Search for notes by fellow students, in your own course and all over the country.
Browse our notes for titles which look like what you need, you can preview any of the notes via a sample of the contents. After you're happy these are the notes you're after simply pop them into your shopping cart.
Title: Loyalty Marketing
Description: Does loyalty always count and can it always last?
Description: Does loyalty always count and can it always last?
Document Preview
Extracts from the notes are below, to see the PDF you'll receive please use the links above
Lecture 2 - loyalty always count
Reicheld 2001 - definition
Figuring out how to invest resources more effectively means constructing a model of life cycle cash
flow defections and profits for your own particular customers
How long can loyalty last?
Depends on nature of product/service - is key
Frequency of regular purchase
Life stage- where is the customer in terms of growing up(not income that's how someone chooses to
spend their money)
Lifestyle
Suitable alternatives/overtures
Brand promiscuity - changing around - products that don't have much involvement
Boredom/inertia - e
...
Banks - to much effort to shift/change
Lifetime loyalty - unlikely but
...
Recording, analysing, tracking customer behaviour helps produce realistic models -RAT
And the aim of these - Improve loyalty decision-making and invest in current/prospective customers
to maximise profit on investment
Focused on maximising profit
Tefel (kettle, toaster, iron company) used guarantee cards to get you to sign up and then used
postcode analysis, they thought there target audience were young/professionals - we're wrong
actually getting people 60+
Life time value exposed -
McCorkell 2000 direct and database marketing - the anticipated future worth of a new customer
calculated by forecasting the period over which the customer will remain loyalty and their spend
within that period
num of years x spend - cost = profit
Income is vanity profit is sanity
Think net profit and also have to allow for inflation
Banks getting the children in early in order for them to stay
Ladder of loyalty - problems - suggests life is a straight line and your keep climbing its very simplistic
Advocate - leap from customer - someone who speaks to there friends about it - brands try very
hard for this e
...
Likes
...
g
...
Actively interested - research to check it out - reviews etc
...
g
...
- no idea how customers are (lean back)
One size does not final but worth evaluating on a case by case basis
Why have enquiries not been converted?
Why is someone a former customer?
Why should existing customer bother to recommended? - amazon cross sell to recommend to
customers
Overall though it is generally cheaper to sell more to an existing customer than reach out to new
ones
The average company will lose 10-20% of its customers each year mostly through bad service
Yet companies can boost profits by 20-100% by keeping 5% more customers each year
The cost of topping up new customers
How much show you spend getting a new customer?
Consider: how much can you afford - anticipating future profit - risky if one of buy -
What customers a re worthy of investment
Current - high potential/low potential
Past - recent/longer term
Enquirers - good prospect/poor prospect
When might they buy/repeat buy? Affecting communications How?
Getting it right - right person/timing/offer (tesco)
Title: Loyalty Marketing
Description: Does loyalty always count and can it always last?
Description: Does loyalty always count and can it always last?